3 Ways to Calculate Which Debts to Pay Off First

which debts to pay off first

Paying off debts can be a daunting task. Whether you find yourself knee-deep in credit card debt, struggling to make ends meet every month, or desperately wish that you could pay off those student loans, there is hope. Once you’re ready to tackle them though, how do you know which debts to pay off first?

3 Ways to Calculate Which Debts to Pay Off First

There are a few methods to determine which debts to pay off first, based on what your goals are and how immediately you need results. Understanding these methods will help you better tackle any debt.

1) In Order of Interest Rate

One method for paying off debts is to rank your debts in order of the interest rate. It makes sense to pay off the debts that are accruing the most interest first since those are the ones that can end up costing you . . . → Read More: 3 Ways to Calculate Which Debts to Pay Off First